Netflix closes "Team Blue" game studio, losing key talent from popular game franchises

Netflix has made the decision to close its in-house triple-A game studio, Team Blue, as part of its ongoing venture into the video game industry. The studio, based in Southern California, saw the departure of several high-profile developers who had been recruited to bolster Netflix’s gaming division.

Among the notable hires for Team Blue were Chacko Sonny, former executive producer of Overwatch, Joseph Staten, the creative lead for Halo, and Rafael Grassetti, known for his work as the art director on God of War. Staten, in particular, was highlighted as a crucial figure in Netflix’s gaming strategy upon joining the team in 2023. Expressing his enthusiasm for the new role, Staten took to Twitter to announce his position as creative director for a new triple-A multiplatform game and original IP under Netflix Games.

The closure of Team Blue and the departure of these key figures have raised questions about the future of Netflix’s gaming endeavors. The streaming service has not provided a clear explanation for the studio shutdown, leaving industry observers to speculate on the implications for the company’s gaming ambitions. Despite this setback, Netflix had previously disclosed that it had over 80 games in development during an earnings call earlier in the year.

Netflix’s co-CEO and president, Gregory Peters, acknowledged the progress made in the gaming sector but noted that the company’s gaming initiatives were still relatively small compared to its core focus on film and TV content. Peters highlighted the success in meeting engagement targets but emphasized the need for continued growth and expansion in the gaming space.

As Netflix navigates this transition in its gaming division, the fate of the departing developers remains uncertain. Industry watchers will be monitoring how Netflix adapts its gaming strategy in the wake of Team Blue’s closure, with hopes that the talented individuals who have left the studio will find new opportunities in the industry.